Volatility still on the slide

Despite the main indexes broadly closing a little lower, the VIX continues to slide, and settled -3.2% @ 13.16. Volatility looks set to decline into October, with VIX in the 12s..perhaps even the 11s. The big question now is whether VIX 20s are viable at all in the remainder of the year.


VIX'60min

VIX'daily3

Summary

Part of the reason the VIX fell today - despite slightly lower equities, is doubtless because the uncertainty of the FOMC is now out of the way.

The daily candle was a reversal (hollow red) one, but still, I can't seriously consider that a floor indicator. Weekly equity charts look strongly bullish for next week, and I have to guess the VIX will remain at very low levels for some weeks..perhaps months to come.

For the volatility bulls out there, the next issue is whether the low from Aug'5 (11.83) will be taken out in the current down wave. Difficult to say, even if I knew where the indexes will be in mid October.

What is clear, this remains a fearless market, backed up...by the Fed.

more later..on the indexes